New Jersey-2010-S991-Introduced

An Act concerning the "Main Street New Jersey" program and amending P.L.2001, c.238, P.L.2003, c.292 and supplementing chapter 14K of Title 55 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.2001, c.238 (C.52:27D-452) is amended to read as follows:

1. a. There is created in the Division of Housing and Community Resources in the Department of Community Affairs the "Main Street New Jersey" program as a comprehensive revitalization program to promote the historic and economic redevelopment of traditional business districts in the State. The purpose of the program shall be to provide small business assistance services to local downtown communities, including business owners and entrepreneurs, with a long term goal of revitalizing local downtown areas.

b. [The Department of Community Affairs shall] On and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of Community Affairs shall enter into an agreement with the New Jersey Housing and Mortgage Finance Agency (HMFA), hereafter the agency, to administer the "Main Street New Jersey" program created under subsection a. of this section, in conjunction with the agency's "At Home Downtown" program. The duties of the department, or of the agency when delegated by agreement, in implementing this program shall include, but not be limited to, the following:

1) employment, in the State classified service, of a State Coordinator and staff for the "Main Street New Jersey" program;

2) entering into contracts with the National Main Street Center and others to assist in accomplishing the program's objectives and provide technical assistance to the "Main Street New Jersey" program and local programs;

3) development of a plan, with the assistance of the Main Street New Jersey Advisory Board established pursuant to section 5 of P.L.2001, c.238 (C.52:27D 456), describing the objectives of the "Main Street New Jersey" program and detailing the methods by which the department shall coordinate the activities of the program with private and public sector revitalization of downtown business areas, solicit and use private sector funding for revitalization of downtown areas, and help municipalities engage in revitalization of their downtown business areas; and

4) coordination and cooperation with other State and local
public and private entities that provide services to municipalities undertaking projects for the revitalization of downtown business areas.

(cf: P.L.2001, c.238, s.1)

2. Section 3 of P.L.2001, c.238 (C.52:27D-454) is amended to read as follows:

3. The commissioner, or the New Jersey Housing and Mortgage Finance Agency (HMFA) when delegated by agreement, shall provide assistance under this program to municipalities selected through a competitive application process. A municipality shall have historic architectural resources in a defined downtown commercial district, a commitment to employ a full time Executive Director for its "Main Street New Jersey" program, establishment of a volunteer board of directors, development of public private partnerships and a program operating budget deemed adequate by the commissioner for not less than three years. A municipality having a population of not more than 20,000, according to the most recent federal decennial census, shall not be required to employ a full time Executive Director for its program.

The commissioner or agency may also provide limited assistance through the "Main Street New Jersey" program to any municipality through training, technical assistance and information on the revitalization of central business districts.

(cf: P.L.2001, c.238, s.3)

3. Section 1 of P.L.2003, c.292 (C.52:27D-454.1) is amended to read as follows:

1. Notwithstanding the provisions of any law, rule or regulation to the contrary, a municipality designated as an urban enterprise zone pursuant to the provisions of P.L.1983, c.303 (C.52:27H 60 et seq.) shall be considered by the commissioner or agency for assistance under the "Main Street New Jersey" program if such municipality includes financial assistance from its enterprise zone assistance fund account, established pursuant to section 29 of P.L.1983, c.303 (C.52:27H 88), for the purpose of having an operating budget deemed adequate by the commissioner or agency for a period of not less than three years and if such municipality is otherwise eligible for assistance pursuant to the provisions of section 3 of P.L.2001, c.238 (C.52:27D 454). Any proposal by such municipality for financial assistance from its enterprise zone assistance fund account, for the purposes of consideration by the commissioner or agency for assistance under the "Main Street New Jersey" program, shall follow the procedures for approval that are established pursuant to the provisions of section 29 of P.L.1983, c.303 (C.52:27H 88).

(cf: P.L.2003, c.292, s.1)

4. Section 4 of P.L.2001, c.238 (C.52:27D-455) is amended to read as follows:

4. The commissioner or the New Jersey Housing and Mortgage Finance Agency (HMFA) when delegated by agreement, shall provide services to each municipality selected to participate in the "Main Street New Jersey" program at no additional cost to the municipality. Those services shall include, but shall not be limited to:

a. In depth volunteer and executive director training;

b. Advanced training on specific downtown issues, including but not limited to marketing, business recruitment, volunteer management and historic preservation;

c. Visits by professional consultants to help each municipality develop its strengths and plan for the success of its downtown area;

d. Small business development consulting services for local business owners;

e. Marketing and public relations consulting for local businesses and "Main Street New Jersey" organizations;

f. Architectural design consulting for business and property owners;

g. Educational materials, including manuals and slide programs;

h. Links to local, State and federal "Main Street" community networks.

(cf: P.L.2001, c.238, s.4)

5. Section 7 of P.L.2001, c.238 (C.52:27D-458) is amended to read as follows:

7. The commissioner or the New Jersey Housing and Mortgage Finance Agency (HMFA) when delegated by agreement shall continue to provide the assistance required under P.L.2001, c.238 (C.52:27D 452 et seq.) to municipalities that were selected to participate in the "Main Street New Jersey" program prior to the effective date of P.L.2001, c.238 (C.52:27D 452 et seq.).

(cf: P.L.2001, c.238, s.7)

6. (New section) a. There is created in the Single Family Programs Division in the New Jersey Housing and Mortgage Finance Agency (HMFA) the "At Home Downtown" program, which shall allow a borrower to finance both the purchase or refinance and rehabilitation of an existing structure or the construction and permanent financing of a new structure. Eligible properties may be single family, two-family, three-family or four- family residential structures, provided that, in a four-family residential structure, the owner shall occupy one of the units as his or her principal residence. Eligible properties shall include a storefront commercial component. The actual mortgage amount shall be based upon the projected value of the property after all construction or specified repairs are completed and shall take into consideration the purchase price or existing debt plus the cost of repairs.

b. If an eligible project is located in an area which has also been designated a part of the "Main Street New Jersey" program, the interest rate for the mortgage loan shall be set at a rate which is at least one-quarter percentile below the lowest mortgage rate otherwise offered by the agency.

c. This program shall be administered by the agency in conjunction with the "Main Street New Jersey" program.

d. Any eligible project that conforms to the standards and requirements of P.L. , c. (C. ) (pending before the Legislature as this bill), and the regulations promulgated pursuant thereto, is hereby declared to be a public work in furtherance of the housing policy of this State, and any contribution of property, money, or services in furtherance of such a program by a unit of local government or the State shall be deemed an expense or cost incurred in furtherance of a public purpose. Notwithstanding any law or rule to the contrary, any eligible project that conforms to the standards and requirements of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deemed a housing project for the purposes of P.L.1983, c.530 (C.55:14K-1 et seq.) and shall be subject to the provisions for loans made under that act.

e. The agency shall adopt the rules necessary to effectuate this section pursuant to section 5 of P.L.1983, c.530 (C.55:14K-5).

7. This act shall take effect on the first day of the third month next following enactment.

STATEMENT

This bill requires the "Main Street New Jersey" program to be administered by the New Jersey Housing and Mortgage Finance Agency (HMFA), in conjunction with its "At Home Downtown," through an interdepartmental agreement with the Department of Community Affairs. The bill makes the "At Home Downtown" a statutory program. The purpose of the "Main Street New Jersey" program is to provide small business assistance services to local downtown communities, with a long term goal of revitalizing local downtown areas. The "At Home Downtown" program provides below market-rate mortgage funds to acquire, rehabilitate, refinance, and construct residential structures with a storefront component. In the event an eligible project for the "At Home Downtown" program is also in a designated "Main Street New Jersey" area, then the HMFA shall offer a reduced mortgage rate to the project of at least one quarter point below the lowest rate offered by the agency.